Ford Expects to Lose $3 Billion on Its EV Business This Year

, the current leader in the EV market, it’s going to be ramping up production, resulting in some of the greater losses. For example, Ford has several new factories in the works, including two battery-cell plants in Kentucky and one in Tennessee, plus a new space focused on making electric trucks. That’s all in service of reaching an annualized production rate of 2 million EVs and an operating profit margin of 8 percent by the end of 2026.

The EV announcement came as part of a larger restructuring in the way Ford reports it finances. Previously, profits and losses were divided by region, but now the marque will divvy up numbers based on business unit: Model E , Ford Blue , and Ford Pro . While EV losses may be mounting, the other Ford sectors have seen increased profits in recent years. Ford Blue tallied operating profits of $6.8 billion last year, more than double 2021 numbers. And Ford Pro clocked $3.2 billion in operating profits in 2022. In total, the automaker is forecasting overall operating profits of $9 billion to $11 billion this year, even with the EV losses.

Last year, Ford CEO Jim Farley said the marque had looked into spinning off at least one of its business units, but ultimately decided against doing so. Sounds like that’ll pay off in the future, at least as far as Ford’s bottom line is concerned.

Yikes.

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Ford to lose $3 billion from EV sales to consumers this year | CNN BusinessFord said it will lose $3 billion on its sales of electric vehicles to consumers this year, but it still expects to hit the profit targets it set for this year of between $9 billion and $11 billion. Oil companies lose on their green energy but make it on hydrocarbons, most autos lose on electric cars but make it on hydrocarbon cars, solar needs gov subsidies. I forget how is banning hydrocarbons going to help beat China unless we go nuclear energy and fast. Most EVs sold in the US are fleet and ride share sales. The public doesn't want them. Government incentives are great for profits.
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Ford sees $3 billion pretax loss in its EV business this yearFord Motor Co expects its electric vehicle business unit to lose $3 billion this year, but remains on track to achieve a pretax margin of 8% by late 2026, the company said. That is nothing like a Mustang. Ford f*cked up. Why would you buy an EV when you know prices will come down, and the technology will improve Retooling costs.
Sumber: Reuters - 🏆 2. / 97 Baca lebih lajut »